- UAE-origin material influenced by low EU offers
- Turkish buyers pressuring down scrap prices
In Pakistan, imported shredded scrap from Europe was offered at $374-378/tonne (t) CFR over the past week, with moderate trade inquiries below the $380/t mark. However, as this week began, offers declined further to $372-375/t amid cautious buying and weakening finished steel prices.
It’s noteworthy that current CFR Qasim EU-origin shredded prices have dropped to levels not seen in nearly five years, reaching the $375-378/t range, last recorded in December 2020.
The ongoing pressure on semi-finished and scrap prices continues to dampen interest in scrap imports, with market participants remaining cautious.
BigMint‘s assessment for European/UK-origin shredded scrap stood at $375/t CFR Qasim, down by $7/t w-o-w.
UAE-origin scrap prices, which were initially stable, gradually came under pressure from lower EU offers. Domestic rebar prices in Pakistan dropped by PKR 5,000/t. The EFS issue in non-ferrous persists. While some clarity is expected this week, rumours suggest duties may apply to uncleared containers. This may impact scrap availability, particularly in the Gujranwala market.
Recent deals
- Around 2,000 t of EU-origin shredded were sold at $375/t CFR Qasim.
- Around 1,000 t of EU-origin shredded got sold at $380/t CFR Qasim.
- A 500-t parcel of UAE-origin fabrication was sold at $386/t CFR Qasim.
- EU-origin shredded of 2,000 t were bought at $382/t CFR Qasim.
- About 1,500 t of EU-origin shredded were bought at $378/t CFR Qasim
- Around 500 t of EU-origin shredded were bought at $380/t CFR Qasim
- Another 500-t of EU-origin shredded were bought at $376/t CFR Qasim.
- A cargo of 2,000 t of EU-origin shredded was sold at $375/t CFR Qasim.
Market comments
A Karachi-based mill said, “Turkiye is the major reason why buyers don’t want to pay more at the moment. Current offers have dropped to $373-375/t CFR. The global market price is crashing because of Turkiye these days.”
A local scrap supplier noted, “The market is still under pressure — all steel products are down by PKR 5,000-7,000/t ($18-25/t), with rebar now at PKR 230,000-232,000/t ($822-827/t). Turkiye offers have further weakened. We heard offers at $372/t CFR Qasim in the first half, but now these are at $370/t– which we believe is a good level for buyers at this point.”
A UAE-origin scrap supplier shared, “Imported shredded from the EU is now around $370-372/t CFR Qasim. We’re hearing buying inquiries in the domestic market at PKR 230,000/t ex ($819), PKR 200,000/t ex for billet ($713), and PKR 135,000/t ex-yard for scrap ($481). Last week, we concluded deals for 500 t of UAE HMS at $370/t, 1,000 t of UK shredded at $369/t, and 500 t of UK sheared at $365/t CFR Qasim.”
Outlook
Market sentiment in Pakistan continues to remain under pressure in the near term, with uncertainty surrounding finished steel consumption. Rebar prices are facing continued pressure until sales pick up and global scrap market conditions stabilise, particularly in Turkiye.
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